clive maund's latest on gold, page-7

SaturnV, money eventually talks. Provided bullion outperforms other asset classes and producer operating margins finally improve, growing dividends from the likes of KCN, DOM, TRY (mml and slr soon??) will shine like beacons next to collapsing dividends in other sectors.

There's a decent chance Jeff Kern gets a super-bullish SKI buy signal for gold stocks in 4 weeks time. He called the spike down in late 2008 (from mid 2006) and bought that plunge. If we get his buy signal I can see gold stocks returning to the upper parts of the channel below, which would blow away the gains seen in 2009.

On the other hand, Mike Shedlock's interview on the weekend (maxkeiser.com) calls for another deflationary wave down straight ahead. How's our money management?? For mine, upside potential outweighs the downside risk for selective goldies right now.



Rowingboat